Non-Binding HMC Offtake Term Sheet with Mitsui

• VHM and Mitsui agree on a non-binding term sheet for HMC purchase
• Mitsui to purchase 50% of Goschen Project's HMC production, up to 65,000 tonnes per annum
• Term sheet includes an option for a three-year extension
• Pricing based on market-linked formula referencing zircon and titanium dioxide prices

VHM Ltd (ASX: VHM) has announced a significant step in its offtake strategy by agreeing to a non-binding term sheet with Mitsui & Co. Ltd. The term sheet involves Mitsui purchasing up to 50% of the Goschen Project's Heavy Mineral Concentrate (HMC) production, amounting to 65,000 tonnes per annum, for an initial three-year period starting from the first production, with an option to extend for another three years. This term sheet builds on a previously announced Letter of Interest and includes a market-linked pricing formula referencing zircon and titanium dioxide prices. The agreement also allows for potential trade finance facilities from Mitsui, subject to due diligence. VHM and Mitsui are progressing towards a binding offtake agreement and are exploring opportunities to increase offtake volumes.